Cookware Order Fulfillment Services | Cookware Drop Shipping
Surcharge or additional charge refers to the additional expenses or economic losses incurred by the ship owner when transporting goods due to various reasons of the ship、 cargo、 port and other aspects. Surcharges are various、 and will be cancelled or new surcharges will be formulated as some circumstances change. The following are some common surcharge categories for your reference:
Bunker Surcharge or Bunker Adjustment Factor (BAF)
Devaluation Surcharge or Currency Adjustment Factor (CAF)
Deviation Surcharge
Suez Canal Surcharge
Transshipment Surcharge
Direct Additional
Port Surcharge
Port Congestion Surcharge
Heavy Lift Additional
Long Length Additional
Cleaning Charge
Fumigation Charge
Ice Surcharge
Optional Fees or Optional Additional
Alteration Charge
1. The market demand of products should be large
This is the basic principle. Long tail products are not suitable for overseas warehouses、 because it will affect the conversion rate and produce life and death inventory. However、 the size of the market is reasonable、 and the seller needs to evaluate according to the capital situation and turnover rate.
2. Focus on the total profit per unit time rather than the profit of a single transaction
In general、 the profit margin of overseas warehouse of most products will be much higher than that of domestic shipment、 which is also the advantage of overseas warehouse.
Is it true that the profits of overseas warehouses are not as good as those of products shipped domestically、 so they must not be overseas warehouses? In fact、 it is not because we also need to comprehensively consider the conversion rate of overseas warehouse、 because products with high conversion rate can also achieve higher total profits through overseas warehouse!
This requires our sellers to look at overseas warehouses from a developmental and overall perspective.
For example、 if the profit margin of a product shipped from China is 20% and that of an overseas warehouse is 10%、 but the conversion rate of an overseas warehouse is 6 times that of a Chinese shipment、 the total profit obtained in the same time period is 3 times that of a Chinese shipment. Therefore、 we should not only look at the profit rate、 but also calculate the overall cost and benefit.
